All parts of England and Wales are now experiencing residential property prices increases, according to the latest figures from the Land Registry.
The data shows that all regions saw a positive monthly change in their average property values. Prices increased 1.7% in July, the strongest monthly growth since July 2004 and the third monthly climb in a row.
But everywhere has seen price decreases in the last year. The average annual price drop is now 11.7%. Overall the North East has seen the steepest decline with properties losing 13.2% of their value. But Luton saw the worst fall with a drop of 22.5%.
The average house price is now £155,885, according to the Land Registry which records all completed property transactions and is widely regarded as producing one of the most authoritative house price reports. Wales experienced the greatest monthly rise with an increase of 3.1% and now has an average property value of £123,122.
It compares the price of properties sold now with the price paid when they were sold previously. But it does lag behind data from lenders and repossessions and property transfers following a divorce are excluded.
However, it reinforces the recovery in the property market that has been revealed in a series of surveys in recent months, including the Nationwide building society’s index which is based on mortgage data, which showed that prices rose by 1.6% in August compared with July.
The figures also show that biggest drop in sales was in properties in the £1.5 million to £2 million sector which saw a fall of 57% in May, the latest data available, compared with May 2008. The number of homes sold at more than £1 million fell 47% while sales of cheaper property rose. Properties worth less than £50,000 saw a 50% increase in sales. How long this recovery will last is unsure but property investors will make hay while the sun shines!